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If a Company Has a 100% Dividend Payout Ratio and Expected

question 32

Multiple Choice

If a company has a 100% dividend payout ratio and expected growth in earnings is zero. Cost of capital is 9%. Its P/E ratio would be expected to be:


Definitions:

Heroin Addict

An individual suffering from addiction to heroin, a powerful illegal opioid, characterized by a compulsive need to use the drug despite harmful consequences.

Alfred Lindesmith

A sociologist known for his studies on drug addiction and for being an early critic of the US drug policy.

Prescription Drug

A prescription drug is medication legally prescribed by a healthcare professional for a specific health condition.

OxyContin

A prescription opioid pain medication known for its potential for abuse and its role in the opioid addiction crisis.

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